Shopify makes 10% of staff redundant
Online commerce platform Shopify has laid off 10% of its 10,000 staff across the globe.
A Shopify NZ spokesperson could not say how many staff members in its New Zealand operation had been made redundant because it was not sharing individual country breakdowns.
The company offers a platform for retailers to operate online.
There are 18,172 Shopify stores in New Zealand.
In a letter posted online, Shopify chief executive Tobias Lutke said the platform had reduced its workforce due to stagnating growth in the sector.
‘‘Most of the impacted roles are in recruiting, support and sales, and across the company we’re also eliminating overspecialised and duplicate roles, as well as some groups that were convenient to have but too far removed from building products,’’ Lutke said.
When the Covid pandemic set in, almost all retail shifted online and the demand for Shopify skyrocketed, so it expanded the company in preparation for a continued five years of high demand, he said.
‘‘It’s now clear that bet didn’t pay off. What we see now is the mix reverting to roughly where pre-Covid data would have suggested it should be at this point.’’
It is understood exit packages were developed with consideration to local regulations around the globe.
People who said they were former Shopify staff complained on social media of having been informed by email of the job losses.
Shopify said affected employees were invited to attend a meeting with an HR representative in their local timezone to ask questions, discuss the details of their package and receive formal documentation about their departure.
Those made redundant would receive 16 weeks of severance pay, plus an additional week for every year of tenure at Shopify and an extension of medical benefits.
The company is also trying to help staff find new roles and said it was offering access to career coaching and interview support, as well as reimbursement of internet expenses during the severance period, a kick-start allowance for purchases like new laptops and other needs, and the ability to keep any home office furniture provided by Shopify.
It is also offering a free Shopify subscription plan for anyone ‘‘drawn to the path of entrepreneurship’’.